L1 Group (L1G) H2 2026 earnings summary

Executive summary

• Underlying NPAT rose 97% year-over-year to $188.8 million, driven by strong fund performance, robust revenue growth, and rapid merger synergy realization following the Platinum Asset Management merger.

• Underlying EBITDA increased 102% to $287.4 million, with total revenue up 49% to $385.9 million and operating expenses down 15%.

• Funds Under Management (FUM) grew 17% to $19.1 billion as of June 30, 2026, with positive net flows in L1 Capital funds and stabilisation in Platinum funds post-merger.

• Exceptional investment performance across key strategies, including 45.4% and 57.8% returns for Long Short and Global Long Short strategies, and 83.2% for the Gold Strategy.

• Integration of Platinum Asset Management is nearly complete, with significant cost synergies realized and targets increased.

Financial highlights

• Total revenue rose 49% year-over-year to $385.9 million, including a one-off $79.3 million performance fee from the closure of the unlisted L1 Wholesale Gold Fund.

• Underlying EBITDA reached $287.4 million, with a 74.5% EBITDA margin.

• Operating expenses decreased due to $31.7 million in realised cost synergies, with a target of $43 million in total synergies by FY27.

• Fully franked dividend of 3.0 cents per share declared for FY26.

• Debt-free balance sheet with $635 million in cash and seed investments as of June 2026.

Outlook and guidance

• Moderate FUM growth expected in FY27, with Platinum outflows anticipated to be offset by L1 Capital inflows; medium-term growth to come from new strategies, affiliates, and acquisitions.

• Management fee margins expected to dip slightly below 100bps in 1H27 due to a fee holiday on GLS, but medium-term growth expected from new strategies and affiliates.

• Estimated FY27 operating expenses of ~$95 million, with intent to pay out a high proportion of underlying operating earnings as fully franked dividends.

• Two new fund launches planned for calendar year 2026, offering medium-term upside.

• Further cost synergies and performance fees possible in the second half, subject to fund performance.